Zell sees housing recovery this spring

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The guy who signs the paychecks around here, Sam Zell, opined on CNBC that he sees a housing turnaround this spring. From Reuters: ‘I think starts have already pretty much bottomed out,’ Zell said. ‘I think the housing market this spring will begin its recovery phase.’

Forbes: ‘Many investors are agreeing with Zell’s assessment that the bottom is near. They are rushing into homebuilders, which were battered throughout 2007, in anticipation of better times ahead. In the past three months, shares of D.R. Horton, Pulte Homes, and Lennar have each rallied at least 40%.’

For the record, even though the big boss is bullish, I continue to believe the housing market in Southern California is a long way from a bottom, and that prices are likely to decline throughout most of 2008. On a national level, it’s quite possible housing starts have bottomed out and will soon begin a recovery. We could also get a little bounce off the bottom this spring in L.A.-area housing activity, but my guess is that after a brief pop, rising inventory will resume putting downward pressure on prices.

It’s worth noting, though, that Zell has made a ton of money in real estate over the years.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: Sam Zell, from The Chicago Tribune